SERVICE AGREEMENT
Exhibit (h)(6)
THIS AGREEMENT made as of the 1st day of May 2019, by and between Alight Series Trust (the “Trust”), on behalf of its sole series, the Alight Money Market Fund (the “Fund”), a Delaware statutory trust having its principal office and place of business at 0 Xxxxxxxx Xxxxx, Xxxxxxxxxxxx, Xxxxxxxx 00000, and DST ASSET MANAGER SOLUTIONS, INC., a Massachusetts corporation having its principal office and place of business at 0000 Xxxxx Xxxxxx Xxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000-0953 (“DST AMS”).
WHEREAS, the Trust desires to appoint DST AMS as its agent to perform for the Fund certain services, as described herein; and
WHEREAS, DST AMS desires to accept such appointment;
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows:
1. | Terms of Appointment and Duties |
1.1 | Subject to the terms and conditions set forth in this Agreement, the Trust hereby employs and appoints DST AMS to act as, and DST AMS agrees to act as, its authorized agent in performing certain services for the Fund, as described in Schedule 1.1 to this Agreement (the “Services”). |
1.2 | DST AMS shall perform the Services in accordance with its standard procedures, with such changes or deviations therefrom as may be agreed upon in writing by the parties from time to time (the “Procedures”). |
2. | Fees and Expenses |
2.1 | Fee Schedule. For the performance by DST AMS of the Services, the Fund agrees to pay DST AMS the fees as set forth in the attached fee schedule (“Schedule 2.1”). Such fees may be changed from time to time subject to mutual written agreement between the Trust and DST AMS. |
2.2 | Other Fees and Expenses. In addition to the fees paid under Section 2.1 above, the Fund agrees to reimburse DST AMS for other reasonable fees and expenses incurred in conjunction with performance of the Services and/or at the specific direction of the Fund. |
2.3 | Increases. The fees and charges set forth on Schedule 2.1 may be increased (i) in accordance with Section 2.5 below; or (ii) upon at least ninety (90) days prior written notice, if changes in laws applicable to DST AMS’ business or laws applicable to the Fund, which DST AMS has agreed to abide by and implement, materially increase DST AMS’ ongoing costs to provide the Services; or (iii) in connection with the addition of new or additional features, services or modes of operation desired by the Fund. If DST AMS notifies the Fund of a proposed increase in fees or charges pursuant to subparagraph (ii) of this Section 2.3, |
the parties shall confer, diligently and in good faith, and agree upon such new fee or charge to cover the amount necessary, but not more than such amount, to reimburse DST AMS for the increased costs of operation or new fund features. |
2.4 | Invoices. The Fund agrees to pay all fees and reimbursable expenses within thirty (30) days following the receipt of the respective invoice, except for any fees or expenses that are subject to good faith dispute. In the event of such a dispute, the Fund may only withhold that portion of the fee or expense subject to the good faith dispute. The Fund shall notify DST AMS in writing within twenty-one (21) days following the receipt of each invoice if the Fund is disputing any amounts in good faith. If the Fund does not provide such notice of dispute within the required time, the invoice will be deemed accepted by the Fund. The Fund shall settle such disputed amounts within five (5) days of the receipt by the Fund of reasonable supporting documentation or explanation from DST AMS with respect to such disputed charge. If no agreement is reached, then such disputed amounts shall be settled as may be required by law or legal process. |
2.5 | Cost of Living Adjustment. After the first year of the Initial Term (as defined in Section ..2.J.), the total fee for all services for each succeeding year shall equal the fee that would be charged for the same services based on the then current fee increased by the percentage increase for the twelve-month period of such previous calendar year of the CPI-W (defined below), or, in the event that publication of the CPI-W is terminated, any successor or substitute index, appropriately adjusted, acceptable to both parties. As used herein, “CPI-W” shall mean the Consumer Price Index for Urban Wage Earners and Clerical Workers for Boston-Brockton-Nashua, MA-NH-ME-CT, (Base Period: 1982-84 = 100), as published by the United States Department of Labor, Bureau of Labor Statistics. |
2.6 | Late Payments. If any undisputed amount in an invoice of DST AMS (for fees or reimbursable expenses) is not paid when due, DST AMS may charge the Fund interest thereon (from the due date to the date of payment) at a per annum rate equal to one percent (1.0%) plus the Prime Rate (that is, the base rate on corporate loans posted by large domestic banks) published by The Wall Street Journal (or, in the event such rate is not so published, a reasonably equivalent published rate selected by DST AMS) on the first day of publication during the month when such amount was due. Notwithstanding any other provision hereof, such interest rate shall be no greater than permitted under applicable provisions of Massachusetts law. |
3. | Representations and Warranties ofDST AMS |
DST | AMS represents and warrants to the Trust that: |
3.1 | It is a corporation duly organized and existing and in good standing under the laws of The Commonwealth of Massachusetts. |
3.2 | It is empowered under applicable laws and by its Articles of Organization and By-Laws to enter into and perform the services contemplated in this Agreement. |
2
3.3 | All requisite corporate proceedings have been taken to authorize it to enter into and perform this Agreement. |
4. | Representations and Warranties of the Trust |
The Trust represents and warrants to DST AMS that:
4.1 | It is a trust or corporation duly organized and existing and in good standing under the laws of the state of its organization. |
4.2 | It is empowered under applicable laws and by its organizational documents to enter into and perform this Agreement. |
4.3 | All requisite corporate proceedings have been taken to authorize it to enter into and perform this Agreement. |
4.4 | It is registered with the Securities and Exchange Commission as an investment company pursuant to the Investment Company Act of 1940, as amended. |
4.5 | A registration statement under the Securities Act of 1933, as amended, for the Fund is currently effective and will remain effective, and appropriate state securities law filings have been made and will continue to be made, with respect to all shares being offered for sale by the Fund, except where failure to have made, or not to make, such filings would not have a material adverse effect on the Fund. |
5. | Indemnification |
5.1 | DST AMS shall not be responsible for, and the Trust shall indemnify and hold DST AMS harmless from and against, any and all losses, damages, costs, charges, reasonable counsel fees (including the defense of any lawsuit in which DST AMS or affiliate is a named party), payments, expenses and liability arising directly out of or attributable to: |
(a) Any action of DST AMS or its agents or subcontractors required to be taken pursuant to this Agreement, provided that such action is taken in good faith and without negligence or willful misconduct;
(b) The Fund’s negligence, willful misconduct or lack of good faith; or
(c) The reliance upon, and any subsequent use of or action taken or omitted by DST AMS, or its agents or subcontractors on: (i) any information, records, or data, which are received by DST AMS or its agents or subcontractors (whether in hard copy or machine readable input, facsimile, data entry, electronic instructions, or other similar means authorized by the Fund), and which have been prepared, maintained or performed by the Fund, or any other person or firm on behalf of the Fund, including but not limited to any broker-dealer; (ii) any instructions or requests of the Fund or any of its officers; or (iii) any paper or
3
document, reasonably believed to be genuine, authentic, or signed by the proper person or persons.
5.2 | Subject to the provisions of Section 6, the Trust shall not be responsible for, and DST AMS shall indemnify and hold the Trust harmless from and against any and all losses, damages, costs, charges, reasonable counsel fees, payments, expenses and liability arising directly out of or attributable to any action by DST AMS or its agents or subcontractors, or the failure of DST AMS or its agents or subcontractors to act, as a result of DST AMS’ negligence willful misconduct or lack of good faith in the performance of its Services hereunder. |
5.3 | In order that the indemnification provisions contained in this Section 5 shall apply, upon the assertion of a claim for which one party may be required to indemnify the other party, the indemnified party shall promptly notify the indemnifying party of such assertion, and shall keep the indemnifying party advised with respect to all developments concerning such claim. The indemnifying party shall have the option to participate with the indemnified party in the defense of such claim or to defend against said claim in its own name or in the name of the indemnified party. The indemnified party shall in no case confess any claim or make any compromise in any case in which the indemnifying party may be required to indemnify the indemnified party except with the indemnifying party’s prior written consent. |
6. | Standard of Care |
6.1 | DST AMS shall at all times act in good faith and agrees to use all commercially reasonable efforts in performing the Services under this Agreement, but assumes no responsibility and shall not be liable for loss or damage due to errors, unless said errors are caused by its negligence or willful misconduct or that of its employees, agents or subcontractors. Notwithstanding the foregoing, DST AMS’ aggregate liability during the term of this Agreement with respect to, arising from or arising in connection with this Agreement, or from all services provided or omitted to be provided by DST AMS under this Agreement, whether in contract, or in tort, or otherwise, is limited to, and shall not exceed the aggregate of the amounts actually received for the Services under this Agreement by DST AMS as fees and charges, but not including reimbursable expenses, during the twelve (12) calendar months immediately preceding the first event for which recovery from DST AMS is being sought. The foregoing limitation on liability shall not apply to any loss or damage resulting from any fraud or willful misconduct by any of DST AMS’ employees, agents or subcontractors. For purposes of this Section 6 “willful misconduct” shall mean those acts undertaken or omitted purposefully under the circumstances in which the person knows that such acts or omissions violate this Agreement and are likely to cause damage or harm to the Fund. |
7. | Confidentiality |
7.1 | DST AMS and the Trust agree that they will not, at any time during the term of this Agreement or after its termination, reveal, divulge, or make known to any person, firm, |
4
corporation or other business organization, any Confidential Information (as defined below) of the other party used or gained by DST AMS or the Trust during performance under this Agreement (except where required by subpoena, administrative order, court order or other legal process, applicable law or regulation). In the event of breach of the foregoing by either party, the parties agree that, in addition to any other remedies that may be available in law, equity, or otherwise for the disclosure of the Confidential Information in breach of this Agreement, the party whose Confidential Information is disclosed shall be entitled to seek and obtain a temporary restraining order, injunctive relief, or other equitable relief against the continuance of such breach. The above prohibition of disclosure shall not apply to the extent that DST AMS must disclose such Confidential Information to a sub-contractor or Fund agent for purposes of providing Services under this Agreement. |
7.2 | For purposes of this Agreement, “Confidential Information” shall mean: (a) with respect to Confidential Information of the Fund: (i) shareholder lists, cost figures and projections, profit figures and projections, all non-public information (including but not limited to trade secrets, proprietary information, and information about products, business methods and business plans) relating to the business of the Fund, or any other secret or confidential information whatsoever of the Fund; and (ii) all information that the Fund is obligated by law to treat as confidential for the benefit of third parties, including but not limited to Customer Information (defined below); and (b) with respect to DST AMS’ Confidential Information: all non-public information, including but not limited to trade secrets, proprietary information, and information about products, business methods and business plans, customer names and other information related to customers, fee schedules, price lists, pricing policies, financial information, discoveries, ideas, concepts, software in various stages of development, designs, drawings, specifications, techniques, models, data, source code, object code, documentation, diagrams, flow charts, research, development, processes, procedures, “know-how,” organizational structure, user guides, marketing techniques and materials, marketing and development plans, and data processing software and systems relating to DST AMS’ business, operations or systems (or to the business, systems or operations of the DST AMS’ affiliates or other third parties). |
7.3 | For purposes of this Agreement, “Customer Information” means all the customer identifying data however collected or received, including without limitation, through “cookies” or non-electronic means pertaining to or identifiable to the Fund’s Shareholders, prospective shareholders and plan administrators (collectively, “Fund Customers”), including without limitation, (i) name, address, email address, passwords, account numbers, personal financial information, personal preferences, demographic data, marketing data, data about securities transactions, credit data or any other identification data; (ii) any information that reflects the use of or interactions with a Fund service, including the Trust’s web site; or (iii) any data otherwise submitted in the process of registering for a Fund service. For the avoidance of doubt, Customer Information shall include all “nonpublic personal information,” as defined under the Xxxxx-Xxxxx-Xxxxxx Act of 1999 (Public Law 106-102, 113 Stat. 1138) (“GLB Act”) and all “personal information” as defined in the Massachusetts Standards for the Protection of Personal Information, 201 CMR 17.00, et seq., (“Mass Privacy Act”). |
5
7.4 | DST AMS will use the Confidential Information, including Customer Information, only in compliance with (i) the provisions of this Agreement and (ii) federal and state privacy laws, including the GLB Act and the Mass Privacy Act, as applicable. |
7.5 | In the event that any requests or demands are made for the inspection of the records of the Fund, DST AMS will use reasonable efforts to notify the Fund (except where prohibited by law) and to secure instructions from an authorized officer of the Trust as to such inspection prior to permitting such inspection. DST AMS expressly reserves the right, however, to exhibit the Fund’s records to any person whenever it is advised by counsel that it may be held liable for the failure to exhibit the records to such person. In such circumstance, DST AMS shall notify the Fund (except where such notification is prohibited by law) that is has exhibited such records and to whom. In the event that DST AMS is requested or authorized by the Fund, or required by subpoena, administrative order, court order or other legal process, applicable law or regulation, or required in connection with any investigation, examination or inspection of the Fund by state or federal regulatory agencies, to produce such records of the Fund or DST AMS’ personnel as witnesses, the Fund agrees to pay DST AMS for DST AMS’ time and expenses, as well as the reasonable fees and expenses of DST AMS’ counsel, incurred in responding to such request, order or requirement. |
8. | Additional Commitments of the Parties |
8.1 | Records. DST AMS shall keep records relating to the services to be performed hereunder (i) in the form and manner as it may deem advisable and as may be required by applicable laws and regulations; and (ii) in accordance with its record retention policies. Records maintained by DST AMS on behalf of the Trust or Fund shall be maintained by DST AMS for such periods as may be required by applicable laws and regulations, or (to the extent permitted by applicable laws and regulations) until such earlier time as DST AMS has delivered such records into the possession or the Fund or its designee or destroyed them at the Fund’s request. |
8.2 | Information Security. DST AMS has implemented and maintains at each service location physical and information security and data protection safeguards reasonably designed to protect against the destruction, loss, theft, unauthorized access, unauthorized use, or alteration of the Trust’s Confidential Information, including Customer Information, in the possession of DST AMS that will be no less rigorous than those in place as of the date of this Agreement, and from time to time enhanced in accordance with changes in regulatory requirements. DST AMS will, at a minimum, update its policies to remain compliant with applicable regulatory requirements, including those under the GLB Act and the Mass Privacy Act. DST AMS will meet with the Fund, at its request, on an annual basis to discuss information security safeguards. If DST AMS or its agents discover or are notified that someone has breached security relating to the Fund’s Confidential Information, including Customer Information, DST AMS will promptly (a) notify the Fund of such breach, and (b) if the applicable Confidential Information was in the possession or under the control of DST AMS or its agents at the time of such breach, DST AMS will promptly |
6
(i) investigate such breach, and (ii) advise the Fund as to the steps being taken that to address such breach. |
8.3 | Business Continuity. DST AMS will maintain a comprehensive business continuity plan and will provide an executive summary of such plan upon reasonable request of the Fund. DST AMS will test the adequacy of its business continuity plan at least annually and upon request, the Fund may participate in such test. Upon request by the Fund, DST AMS will provide the Fund with a letter assessing the most recent business continuity test results. In the event of a business disruption that materially impacts DST AMS’ provision of services under this Agreement, DST AMS will promptly notify the Fund of the disruption and the steps being implemented under the business continuity plan. |
8.4 | Inspections. During the term of this Agreement, authorized representatives of the Fund may conduct periodic inspections of DST AMS’ facilities and DST AMS’ records and procedures solely as they pertain to the Services for the Fund under or pursuant to this Agreement. Such inspections shall be conducted at the Fund’s expense and shall occur during DST AMS’ regular business hours and, except as otherwise agreed to by the parties, no more frequently than once a year. In connection with such inspections, the Fund shall not attempt to access, nor will it review, the records of any other clients of DST AMS and the Fund shall conduct the inspection in a manner that will not interfere with DST AMS’ normal and customary conduct of its business activities, including the provision of services to the Fund and to other clients. DST AMS shall have the right to immediately require the removal of any Fund representatives from its premises in the event that their actions, in the reasonable opinion of DST AMS, jeopardize the information security of its systems and/or other client data or otherwise are disruptive to the business of DST AMS. DST AMS may require any persons seeking access to its facilities to provide reasonable evidence of their authority. DST AMS may also reasonably require any of the Fund’s non-employee representatives to execute a confidentiality agreement before granting such individuals access to its facilities. DST AMS will also provide reasonable access to the Fund’s governmental regulators, at the Fund’s expense, solely to (i) the Fund’s records held by DST AMS and (ii) the procedures of DST AMS directly related to its provision of services to the Fund under the Agreement. |
9. | Termination of Agreement |
9.1 | Term. The initial term of this Agreement (the “Initial Term”) shall be five (5) years from the date first stated above unless terminated pursuant to the provisions of this Section 9. The term may be renewed for successive periods of one year each (“Renewal Term”). Either DST AMS or the Trust shall give written notice to the other party at least one hundred twenty (120) days before the expiration of the Initial Term or of a Renewal Term if such party desires not to renew the Agreement for an additional one year period and in the absence of such notice, the Agreement shall renew automatically for such one year term. At least one hundred twenty (120) days before the expiration of the Initial Term or a Renewal Term, DST AMS and the Trust will agree upon a Fee Schedule for the upcoming Renewal Term. In the event the parties fail to agree upon a new Fee Schedule as of such |
7
date, the Fee Schedule set forth as Schedule 2.1 hereto shall remain in effect subject to increase under Section 2.5. |
9.2 | Deconversion. In the event that this Agreement is terminated or not renewed for any reason by the Trust, DST AMS, at the Trust’s request, shall offer reasonable assistance to the Fund (the “Deconversion”). Such Deconversion is subject to the recompense of DST AMS for such assistance at its standard rates and fees in effect at the time and to a reasonable time frame for performance as agreed to by the parties. As used herein “reasonable assistance” and “transitional assistance” shall not include requiring DST AMS (i) to assist any new service or system provider to modify, to alter, to enhance, or to improve such provider’s system, or to provide any new functionality to such provider’s system, or (ii) to disclose any confidential information of DST AMS. |
9.3 | Termination or Non Renewal. |
(a) Outstanding Fees and Charges. In the event of termination or non-renewal of this Agreement by the Trust, the Fund will promptly pay DST AMS any fees and charges for the services provided under this Agreement (i) which have been accrued and remain unpaid as of the date of such notice of termination or non-renewal and (ii) which thereafter accrue for the period through and including the date of the Fund’s Deconversion.
(b) Deconversion Costs. In the event of termination or non-renewal of this Agreement, the Fund shall pay DST AMS for the Deconversion costs as noted in Section 9.2; however, notwithstanding the foregoing, no payment for Deconversion shall be owed to DST AMS if the Trust does not request Deconversion from DST AMS, as set forth in Section 9.2.
(c) Post-Deconversion Support Fees. In the event of termination or non-renewal of this Agreement, the Fund shall pay DST AMS all reasonable fees and expenses for providing any support services that the Trust requests post Deconversion.
(d) Early Termination for Convenience. In addition to the foregoing, in the event that the Trust terminates this Agreement prior to the end of the Initial Term or the Renewal Term other than for cause under Section 9.7, the Fund shall pay DST AMS as follows: (i) if such termination occurs on a date more than six months prior to the end of the Initial Term or the Renewal Term (as applicable), an amount equal to six times the average monthly fee paid by the Fund to DST AMS under the Agreement; and (ii) if such termination occurs on a date within six months of the end of the Initial Term or the Renewal Term (as applicable), an amount equal to the average monthly fee paid by the Fund to DST AMS under the Agreement multiplied by the number of months remaining in the Initial or Renewal Term (as applicable). In either of (i) or (ii) above, such average monthly fee will be calculated as set forth on the then current Fee Schedule, on the date notice of termination was given to DST AMS.
(e) Due Dates for Payments. The amounts under paragraphs (a), (b) and (d) above shall become due and payable and shall be paid by the Fund on the business day immediately
8
prior to the Deconversion. The amounts due under paragraph (c), if applicable, shall be invoiced as incurred and paid promptly by the Fund upon receipt of such invoices.
9.4 | Corifidential Information. Upon termination of this Agreement, each party shall return to the other party all copies of confidential or proprietary materials or information received from such other party hereunder, other than materials or information required to be retained by such party under applicable laws or regulations. |
9.5 | Unpaid Invoices. Except with respect to any amount subject to a good faith dispute within the meaning of Section 2.4 of this Agreement, DST AMS may terminate this Agreement immediately if (i) an unpaid invoice payable by the Fund to DST AMS has been outstanding for more than ninety (90) days after receipt by the Fund, and (ii) DST AMS has made a good faith effort to contact the Fund to alert the Fund about the unpaid invoice prior to the end of that ninety (90) day period. |
9.6 | Bankruptcy. Either party hereto may terminate this Agreement by notice to the other party, effective at any time specified therein, in the event that (a) the other party ceases to carry on its business or (b) an action is commenced by or against the other party under Title 11 of the United States Code or a receiver, conservator or similar officer is appointed for the other party and such suit, conservatorship or receivership is not discharged within thirty (30) days. |
9.7 | Cause. If either of the parties hereto becomes in default in the performance of its duties or obligations hereunder and such default has a material adverse effect on the other party, then the non-defaulting party may give notice to the defaulting party specifying the nature of the default in sufficient detail to permit the defaulting party to identify and cure such default. If the defaulting party fails to cure such default within sixty (60) days of receipt of such notice, or within such other period of time as the parties may agree is necessary for such cure (the “Cure Period”), then the non-defaulting party may terminate this Agreement upon notice to the defaulting party of not less than sixty (60) days subsequent to the expiration of the Cure Period. |
9.8 | Within thirty (30) days after completion of a Deconversion, the Fund will give notice to DST AMS containing reasonable instructions regarding the disposition of any records or other property belonging to the Fund and then in DST AMS’ possession and shall make payment for DST AMS’ reasonable costs to comply with such notice. In no event shall DST AMS be required to keep archived versions of the Fund’s records beyond the requirements of law applicable to its business and the terms of this Section 9.8. |
10. | Assignment and Third Party Beneficiaries |
10.1 | Neither this Agreement nor any rights or obligations hereunder may be assigned by either party without the written consent of the other party. Any attempt to do so in violation of this Section shall be void. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. |
9
10.2 | Except as explicitly stated elsewhere in this Agreement, nothing under this Agreement shall be construed to give any rights or benefits in this Agreement to anyone other than DST AMS and the Trust, on behalf of the Fund, and the duties and responsibilities undertaken pursuant to this Agreement shall be for the sole and exclusive benefit of DST AMS and the Trust. This Agreement shall inure to the benefit of and be binding upon the parties and their respective permitted successors and assigns. |
10.3 | This Agreement does not constitute an agreement for a partnership or joint venture between DST AMS and the Trust. Neither party shall make any commitments with third parties that are binding on the other party without the other party’s prior written consent. |
11. | Subcontractors |
11.1 | DST AMS may, without further consent on the part of the Fund, subcontract for the performance hereof with an affiliate of DST AMS; provided however, that DST AMS shall be fully responsible for all obligations under this Agreement. |
11.2 | For purposes of this Agreement, unaffiliated third parties such as, by way of example and not limitation, Airborne Services, Federal Express, United Parcel Service, the United States Postal Service, the NSCC and telecommunication companies, shall not be deemed to be subcontractors of DST AMS. |
12. | Miscellaneous |
12.1 | Amendment. This Agreement may be amended or modified by a written agreement executed by both parties. |
12.2 | Massachusetts Law to Apply. This Agreement shall be construed and the provisions thereof interpreted under and in accordance with the laws of The Commonwealth of Massachusetts. |
12.3 | Force Majeure. In the event either party is unable to perform its obligations under the terms of this Agreement because ofacts of God, acts of war or terrorism, strikes, equipment or transmission failure or damage reasonably beyond its control, or other causes reasonably beyond its control, such party shall not be liable for damages to the other for any damages resulting from such failure to perform or otherwise from such causes. |
12.4 | Consequential Damages. Neither party to this Agreement shall be liable to the other party for special, indirect or consequential damages under any provision of this Agreement or for any special, indirect or consequential damages arising out of any act or failure to act hereunder. |
12.5 | Survival. All provisions regarding indemnification, warranty, liability, and limits thereon, and confidentiality and/or protections of proprietary rights and trade secrets shall survive the termination of this Agreement. |
10
12.6 | Severability. If any provision or provisions of this Agreement shall be held invalid, unlawful, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired. |
12.7 | Priorities Clause. In the event of any conflict, discrepancy or ambiguity between the terms and conditions contained in this Agreement and any Schedules or attachments hereto, the terms and conditions contained in this Agreement shall take precedence. |
12.8 | Waiver. No waiver by either party or any breach or default of any of the covenants or conditions herein contained and performed by the other party shall be construed as a waiver of any succeeding breach of the same or of any other covenant or condition. |
12.9 | Merger of Agreement. This Agreement constitutes the entire agreement between the parties hereto and supersedes any prior agreement with respect to the subject matter hereof whether oral or written. |
12.10 | Counterparts. This Agreement may be executed by the parties hereto on any number of counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. |
12.11. | Reproduction of Documents. This Agreement and all schedules, exhibits, attachments and amendments hereto may be reproduced by any photographic, photostatic, microfilm, micro-card, miniature photographic or other similar process. The parties hereto each agree that any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding, whether or not the original is in existence and whether or not such reproduction was made by a party in the regular course of business, and that any enlargement, facsimile or further reproduction shall likewise be admissible in evidence. |
12.12 | Notices. All notices and other communications as required or permitted hereunder shall be in writing and sent by first class mail, postage prepaid, addressed as follows or to such other address or addresses of which the respective party shall have notified the other. |
(a) | If to DST AMS, to: |
DST Asset Manager Solutions, Inc. |
0000 Xxxxx Xxxxxx Xxxxx |
Quincy, Massachusetts 02169 |
Attention: General Counsel, Legal Department |
Facsimile: 000-000-0000 |
(b) | Ifto the Fund, to: |
4 Overlook Point |
Lincolnshire, IL 60069 |
Attn: Xxxxxxx Xxxxx |
11
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in their names and on their behalf by and through their duly authorized officers, as of the day and year first above written.
ALIGHT SERIES TRUST | DST ASSET MANAGER SOLUTIONS, INC. | |||||||
By: |
/s/ Xxxxxx Xxxxx |
By: |
/s/ Xxxxx Xxxxxx | |||||
Name: Xxxxxx Xxxxx |
Name: Xxxxx Xxxxxx | |||||||
Title: President |
Title: Authorized Representative |
12
SCHEDULE 1.1
BLUE SKY SERVICES
Trust Responsibilities
In connection with the provision of the Services by DST AMS, Trust shall:
1. | Identify the states and territories where the Fund’s shares will be offered for sale; |
2. | Determine the availability of any exemptions under a jurisdiction’s Blue Sky laws with the assistance of DST AMS; |
3. | Work with DST AMS to identify what systematic exemptions will be taken by the Fund and coded on the Fund’s Transfer Agent’s system; |
4. | Provide written instructions in DST AMS’ standard format to implement systematic exemptions and exclusions from reporting where practicable on the Fund’s Transfer Agent system or the DST AMS Blue Sky software system; |
5. | Provide written instructions to DST AMS to remove current permit period sales from DST AMS’ Blue Sky software database upon determination that such sales qualify for exemptions or exclusion from reporting to the applicable states where registration fees are based on sales; |
6. | Facilitate the issuance of a limited power of attorney in favor of DST AMS in the form set forth in Appendix A to this Agreement in order that DST AMS may submit Notice Filings and other filings required by the states and territories and payments with respect thereto on behalf of the Fund; |
7. | To the extent the Trust is notified by an intermediary of new sales data feeds, notify DST AMS in writing of any changes to or additions of Blue Sky sales data feeds and work with DST AMS to facilitate the necessary updates; |
8. | Serve as liaison with the Fund to facilitate the transmission of wire transfers for payment by the Fund for invoiced state fees as needed; and |
9. | Provide written instruction detailing action to be taken upon receipt of written notification from DST AMS that a direct broker Blue Sky sales feed is available for activation. |
DST AMS Responsibilities
DST AMS will perform the Services set forth below.
1. | File Initial Notice Filings, as applicable, in all states and territories in which the Fund’s shares will be offered, in the form of and as required by the applicable laws of the states and territories; |
2. | File the Fund’s renewals and amendments to reflect name changes, terminations, domicile changes, issuer address changes, fiscal year end changes, distributor changes, as applicable, in all states and territories in which the Fund’s shares will be offered, in the form of and as required by the applicable laws of the states and territories; |
3. | File the Fund’s sales reports to the extent required by applicable law, in the form of and as required by the applicable laws of the states and territories; |
13
4. | Invoice the Fund for fees owed to each state in accordance with procedures agreed upon in writing by Fund and DST AMS; |
5. | At the direction of the Trust, make payments, at the expense of the Fund, of Notice Filing fees; |
6. | File the Prospectuses and Statements of Additional Information and any amendments and supplements thereto to the extent required by the applicable laws of the states and territories; |
7. | File annual reports and proxy statements to the extent required by the applicable laws of the states and territories; |
8. | File all necessary notices to permit the Fund (or class of the Fund, as applicable) that is eligible for reduced fees applicable to money market funds or otherwise to qualify for reduced fees in a state or territory; |
9. | File all correspondence and related documentation so as to provide notice of the Fund’s intent to take exemptions if such notice is required by the state or territory in order to permit the Fund to utilize such exemptions; |
10. | Advise the Trust prior to communicating with the states and territories regarding any sales in excess of the registered amount for a permit so the Fund can advise in writing the action to be taken; |
11. | Provide the Trust information regarding the Sales to Existing Shareholders Exemptions and the Institutional Investor Exemptions available in the states and territories; |
12. | Include in sales report filings, all sales reported to DST AMS via (i) transfer agency Blue Sky sales feed and; (ii) broker Blue Sky sales feeds, including, without limitation, feeds that (a) were transferred as part of the conversion from the Fund’s prior Blue Sky vendor, or (b) confirmed in writing by the Trust to be activated, less any exempt sales that the Fund has directed DST AMS in writing to remove prior to such filing. |
13. | At the direction of the Fund, serve as liaison between the Fund and the applicable Blue Sky jurisdiction: |
14. | Provide information concerning Blue Sky reporting requirements and mutual fund industry Blue Sky reporting practices including utilization of exemptions and intermediary data feeds; |
15. | Conduct annual due diligence reviews; |
16. | In the event that DST AMS becomes aware of the sale of the Fund’s shares in a jurisdiction in which no Notice Filing has been made, DST AMS shall report such information to the Trust and the Trust shall instruct DST AMS with respect to the corrective action to be taken; |
17. | File all additional amendments to increase registered amounts in accordance with agreed upon procedures in all states and territories in which the Fund’s shares will be offered, in the fo1m of and as required by the applicable laws of the states and territories; and |
18. | Perform such additional services as DST AMS and the Trust may agree upon in writing and added to this Agreement by amendment. |
14
SCHEDULE 2.1
FEES AND EXPENSES
Effective date: May 1st, 2019 through April 30th, 2024
Blue Sky Service Fees
State Registration Filings (billed monthly at the rate of I/12th of the annual fee)
$101.00 annually, per each state permit
Ongoing Sales Feed Set-Up
One-time complex fee for establishing additional transfer agency/ broker sales feeds
$1,000.00 per data feed
Annual fee per direct broker/dealer linkage
$500.00 per data feed
Pricing includes the following expenses associated with Blue Sky Services only: mailing, postage, customized programming/enhancements, telecommunications, and check fees.
15